Agreement At Moscow Talks Thought Remote

Greymouth Evening Star, 24 August 1948, Page 6

Agreement At Moscow Talks Thought Remote

LONDON, August 23. The Western envoys in Mosdow, during the seven days since they last saw Mr Molotov, are believed to have decided on their final terms on which four-Power talks on Germany can be broached. “Observers in Moscow believe that the Western envoys will see .Mr Molotov today and present the final Western reply,” says Renter’s Moscow correspondent. “It is thought they will then see Mr Stalin before returning to their capitals. Western observers say that, whatever the outcome, the talks will have accomplished a useful purpose in re-emphasising Western unity on Berlin.” “h looks very much as though i lie effort to get a settlement with the Russians on Germany is failing,” says the Manchester Guardian today. “There is no evidence I'rom the Russian side of willingness to meet the Western Allies even one-eighth of the way towards

agreement. “The Russians in their recent general dealings have been more bellicose than ever. Mr Vyshinsky’s bullying of the Western Powers at the Danube Navigation Conference was reminiscent of the Nazi technique, and Russian displays of force in Berlin against the Western Powers and non-Ccrnmunist Germans have become more and more impudent.” Currency Question The diplomatic correspondent of the Daily Telegraph says that it is the currency question in Berlin that mainly divides the Western Powers from Russia. The Russians are insisting that their Eastern mark shall be the sole currency in Berlin. The Western Powers have said that they do

not object to a unified or even the Eastern zone’s currency in Berlin, provided it is under four-Power control. In Berlin today the United States Military Governor in Germany (General Lucius Clay) announced that there was enough food in the Western sectors to last 35 days. The rye and wheat harvest yield in the bizonal area was expected to be 30 per cent, higher than it was in 1947. He added that the monthly pig iron output had increased 20 per cent, in July, and that hot-rolled products had increased 27 per cent. General Clay attributed the increase to satisfactory receipts of coal and improved use of coal by steel mills. General Clay said that the black market was now confined generally to tobacco, coffee, and alcohol. The improved food position had reduced the number of serious strikes. “An overwhleming majority of Germans hate the Russians and want us to stay in Berlin,” said Mr Howard Beale, a member of the Australian House .of Representatives, who, has returned to London from a visit to Berlin. His impression is that the Western Powers “most certainly will not get out under Russian pressure. He said that he had met most ol the British and United States military and economic chiefs in Berlin and had been impressed by their firmness, restraint, and wisdom. Russians Lose Prestige “The Russian attempt to discredit the Western allies' has rebounded against the Russians themselves,” he said. “Thev have lost prestige through it,” In the Soviet sector Berliners seemed depressed and down at heel. The economic position of the Western zones was steadily improving. “Unless there is war, nothing can prevent a spectacular improvement in the German economy. Western Germany in 1948 will spend £500,000,000 on irhports.” Mr Beale described the Western air lift as a splendid success.